DNR releases Augustine Island geothermal lease sale 2025 results

Kay Cashman

Petroleum News

The Alaska Department of Natural Resources' Division of Oil and Gas released preliminary results for the 2025 Augustine Island competitive geothermal lease sale on April 22.

(See map in the online issue PDF)

The following bids are subject to further lease adjudication, as actual acres and bonus bids will change after title and survey review is complete:

Total Valid Bids: 6

Highest Bonus Bid: $4,620.56

Total Tracts Sold: 6

Estimated Total Acres Sold: 11,991

Estimated High Bonus Bid Sum: $17,741.28

Highest Bid per Acre: $2.23

Average High Bid per Acre: $1.48

In an April 22 press release GeoAlaska LLC said it was pleased to announce it was the apparent high bidder on all six tracts in the 2025 state of Alaska Augustine Island competitive geothermal lease sale. GeoAlaska bid on 100% ownership in the following six tracts: AI0010, AI0011, AI0012, AI0019, AI0023, and AI0024 on ADL 394387, 394388, 394389, 394390, 394391, 394392.

The acquisition adds 11,991 acres to the company's growing geothermal portfolio.

In addition, effective April 1, DNR converted GeoAlaska's geothermal prospecting permits covering the southern half of Augustine Island into seven geothermal leases with 10-year terms. These leases secure rights to an additional 10,330 acres, for a total of 22,321 acres at Augustine Island for the company.

Founded in May 2020 and majority-owned by Alaskans, GeoAlaska LLC partnered in 2023 with Ignis Energy Inc. -- a Houston-based international geothermal exploration and production company.

Augustine Island is in the southwest portion of Cook Inlet, immediately south of the Iniskin Peninsula. GeoAlaska's geothermal journey on Augustine Island began when its first prospecting permit was issued by DNR in 2022.

After conducting a gravity and audio-magnetotelluric survey in 2023, the two-year exploration permit was extended for a third year. This survey was followed by an expanded magnetotelluric survey on Augustine Island in 2024.

These subsurface surveys have identified three shallow geothermal reservoir targets and a deeper reservoir target above the island's magma storage system located about 2 km subsurface.

Power modeling based on conservative volumetric and enthalpy models supports a P50 estimate of 224 MWh.

Exploratory drilling is the next phase to further de-risk the project and to refine the P50 power model, GeoAlaska said in its press release.

--KAY CASHMAN